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RBI governor Shaktikanta Das (MINT_PRINT)
RBI governor Shaktikanta Das (MINT_PRINT)

Markets to watch out RBI announcements; Banks, aviation stocks in focus

  • RBI governor’s presser comes ahead of the monetary policy committee meeting scheduled between 3 June and 5 June
  • In global markets, Asian shares plunged on Friday as US-China tensions curbed investor risk appetite and caused global equity markets to stumble

Indian stock markets may continue to remain volatile on Friday tracking weakness in Asian peers. The Reserve Bank of India governor Shaktikanta Das will address press at 10 am today and major announcements, if any, by the central bank may boost the investor sentiment. SGX Nifty, down 0.3%, suggests a weak opening for Indian benchmark indices.

RBI governor’s presser comes ahead of the monetary policy committee meeting scheduled between 3 June and 5 June. The committee is expected to announce its second bi-monthly policy on June 5.

India’s outstanding bank loans shrank during the lockdown despite a massive liquidity injection by the central bank to spur credit growth, indicating demand for loans is ebbing as the pandemic leaves a haze of uncertainty about the future.Total outstanding non-food credit shrank by 1.36 trillion, or 1.32%, to 101.83 trillion on 8 May from 27 March, data from the RBI showed.

Private equity giant KKR will buy 2.32% stake in Jio Platforms for Rs11,367 crore, Reliance Industries Limited (RIL) said in a statement on Friday. It's right issue is open for subscription till 3 June.

India’s airlines will resume operations from Monday, including at coronavirus hotspots of Delhi and Mumbai, which host the country’s busiest airports, likely complicating their return to normalcy after a two-month closure.

In global markets, Asian shares plunged on Friday as US-China tensions curbed investor risk appetite and caused global equity markets to stumble.

Global equities pulled back after Beijing was set to impose new national security legislation on Hong Kong. The move drew a warning from President Donald Trump, who said the United States would react "very strongly" against it.

The back-and-forth between the world's two largest economies stoked worries that the tensions could threaten "Phase 1" of a US-China trade deal reached early this year. That prompted Wall Street shares to slip from the two-month highs made in the previous session on hopes of a economic recovery as governments began to lift their coronavirus restrictions.

The US dollar, seen as a safe-haven, rose amid those concerns. The dollar index, which measures the greenback’s strength against six major currencies, was up 0.1%.

Spot gold, also typically seen as a risk-off option, was little-changed after losses of 1% as investors booked profits or opted for cash.

Crude oil futures rose to their highest since March, as recovering demand and production cuts offset investor jitters seen in other markets.

(Reuters contributed to the story)

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